Spain To Raise Power Prices By 5%-7% In April-Industry Minister

Spain's
government plans to increase power prices by between 5% and 7% at the beginning
of April, Industry Minister Jose Manuel Soria said Tuesday in an interview with
broadcaster Antena 3.

The rise of what is known as "last recourse" prices--a price ceiling
for mostly domestic consumers of electricity--would affect about 20 million
households and small companies and will be approved at the government's cabinet
meeting Friday, Soria said.

The increase, Soria said, must be implemented to comply with a Supreme Court
ruling forcing the government to raise prices when the annual tariff deficit
surpasses EUR1.5 billion.

The country's power utilities and the government itself will also shoulder part
of the cost of the deficit overrun, he said.